Capital Markets School - Case Study

In addition to regulatory capital ratios, the Bank will also monitor capital at risk indicators. Those ratios are listed below, along with compliance thereto:

Guideline

Sep-20

Dec-20

Mar-21

Jun-21

Sep-21

Exception

C & I Loans / Capital (%) Commercial RE Loans / Capital (%) Non-Agency Bonds / Capital (%)

350% Max 300% Max 250% Max

NA

NA

NA

93.64%

102.30%

No

NA

NA

NA

105.87% 109.70%

No

56.52%

57.41%

58.32%

50.10%

58.16%

No

Liquidity policy ratios are listed below, along with compliance thereto.

Policy

Sep-20 21.16%

Dec-20 25.74%

Mar-21 31.00%

Jun-21 33.80%

Sep-21 37.98%

Exception

Liquidity Ratio (%) Pledged Secs/ Securities (%) Brokered Dep/ Deposits (%)* Net Lns & Lses/ Tot Deposits (%) Net NonCore Funding Dependence (%)*

10% Min

No

100% Max 74.22%

66.98%

66.11%

53.85%

52.68%

No

10% Max

0.00%

0.00%

0.00%

0.00%

0.00%

No

100% Max 70.52%

66.68%

58.19%

55.26%

51.66%

No

20% Max

0.02%

-5.52%

-12.55%

-2.43% 4.17%

No

Wholesale funding as a percentage of total assets was 2.23% as of September 30, 2021 compared to an allowable 20% policy maximum. In addition to wholesale funding, the Bank also relies on $60.4 million in jumbo deposits, which bring the total volatile funding ratio to 8.97%.

Policy

Sep-20

Dec-20

Mar-21

Jun-21

Sep-21

Exception

Tier 1 Basic Surplus/Deficit Tier 2 Basic Surplus/Deficit Tier 3 Basic Surplus/Deficit

0.0% Min

NA

NA

NA

19.66%

22.76%

No

4.0% Min

NA

NA

NA

20.90%

24.04%

No

8.0% Min

NA

NA

NA

35.90%

39.04%

No

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